South Africa eyes up the many multifaceted advantages to Social Impact Bonds which ought to gives DIBs/SIBs strong momentum throughout the continent…
SIBs Could Boost Development And Job Creation In SA
bizcommunity
SIBs hold tremendous potential for government to increase effective support for struggling entrepreneurs in South Africa, according to a new report presented to the National Treasury, the Jobs Fund, and the dti.
The report, a policy paper entitled Exploration of Social Impact Bonds for SME Development, was put together by the Bertha Centre for Social Innovation and Entrepreneurship (located at the University of Cape Town Graduate School of Business), Genesis Analytics and Social Finance (the UK organisation that developed the SIB model).
“SIBs are innovative financing instruments that are designed to help governments explore and expand effective social programmes among a pre-defined target group,” says Jane Newman, International Director at Social Finance. “They bring rigour, innovation and flexibility to social programmes by focusing on agreed outcomes, testing new innovations and building responsive programmes that are managed to deliver the best results.”
Following a grant by the Flanders International Cooperation Agency (FICA) and the South African National Treasury in September 2013, the research group explored the applicability of SIBs as a financing instrument in South Africa. In particular, the scoping study sought to assess issues relating to the design of, and gauge the interest of key stakeholders in, a SIB providing business development services (BDS) to SMEs so as to stimulate economic development and job creation.